Managing The Emotional Rollercoaster of Trading

Trading on the stock market, particularly with your own hard earned cash can be stressful; indeed the emotional rollercoaster ride of the financial peaks and troughs you are likely to face, can cause many people a great deal of stress and upset.

There are companies that can help take some of the stress away from trading, such as CMC Markets, but when it comes down to it, there’s no trading strategy that can mitigate the emotional rollercoaster of stocks rising and falling; and of course, at times when things are going well, this can cause an abundance of feel good hormones to nourish your brain – but when it’s not going so well, we can be left feeling like an emotional wreck.

This post therefore offers four tips on how to deal with with the stress and anxiety many people investing their money in the stock market.

  1. AVOID CAFFEINE, ALCOHOL AND NICOTINE

It’s understandable why people reach out for a cigarette to placate their anxiety, a drink to take the edge of their stress, or a shot of caffeine to boost their energy – but these temporary ‘cures’ often exacerbate things.  Caffeine and Nicotine are both stimulants. Alcohol is technically a depressant, but can act as a temporary stimulant in small doses. Many times, these substances offer a temporary sense of relief but then magnify and multiply the feelings you are trying to satiate.

Consider replacing these substances for water, chamomile team, or natural fruit juice.

  1. GET MORE SLEEP

It’s important you allow yourself to rest.  This can be easier said than done, however, when you’re going through tough times.  It’s possible that your mind will be whizzing at 100 miles per hour as your head hits the pillow and rather than benefit from the much needed rest your body and mind deserves; you lie there, frustrated, in a state of insomnia.

Consider listening to guided meditations or relaxing new age music as you get into bed.  Ensure the room is as dark as possible. Don’t take your laptop to bed with you, as the bright light stimulates your brain waves rather than allowing them to slow down into a state that is more conducive to sleep.

  1. EXERCISE

You might not feel like it, indeed, you might not feel like you have the time for exercise when in a state of stress; but exercise is one of the most beneficial activities you can do to reduce your stress levels.  Exercise will give you a ‘natural high’ known as an endorphin rush. It will help you feel more in control and able to tackle the mountains of your mind.

  1. MEDITATE

If you’re stressed out then you probably feel you don’t have time for meditation.  You’ve got too many things to take care of to sit still. Meditation, however, is just as helpful as exercise in terms of putting you in the right physiological state to deal with what needs to be dealt with.  It’s much better to work through each day from a calm and grounded place of response rather than a tense and stressed place of reaction.